Standard & Poor's last week acknowledged its concern with an Italian Supreme Court ruling that permitted a liquidator to terminate performing translativo leases, though the rating agency is not planning to take immediate action on existing securitizations.

S&P acknowledged that prior to this ruling, most believed an insolvency officer of a lessor did not have the right (or the incentive) to terminate leases of a translativo nature in the event the lessor became insolvent. Ian Bell at S&P stated that, under this assumption, S&P was able to assign the highest rating possible to lease securitizations. The implication of the recent ruling will pressure the rating agency's approach to Italian leases.

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